Raul de Andrea, head of the Peruvian insurance association Apeseg, recently stated that the organization expects total premiums to increase at least another 10% in 2009. In 2008, total premiums increased by 16.9% to 4.33 billion soles (approximately $1.4 billion), with life insurance premiums rising 24%, property and casual premiums increasing 22% and accident and illness premiums increasing 9.8%.
Apeseg’s prediction for 2009 assumes GDP growth of 5% and further assumes that premium growth will again outpace GDP growth. GDP growth reached 9.4% in 2008. However, one significant factor in GDP growth last year, double-digit growth in consumer credit and mortgages, is not expected to continue in the coming year given the economic crisis.
Insurance penetration remains very low in Peru at only 1.0% of GDP. In an attempt to further increase penetration, companies will continue to develop alternative products and target geographical regions and populations currently underserved by insurance, according to de Andrea.
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